"I am pleased to say that EB reached its main goal for 2013 –
to grow its operating profit from the previous year. I want to
thank our personnel for the good results achieved in 2013 and
for the efforts made to build our future success."

- Jukka Harju, CEO

Financial Development in 2013  

EBīs net sales from Continuing Operations in 2013 grew by 14.6 per cent year-on-year to EUR 199.3 million (restated net sales of EUR 173.9 million, in 2012). Operating profit from Continuing Operations was EUR 8.1 million including the non-recurring cost of approximately EUR 0.8 million resulting from the cost saving measures in the Wireless Business Segment during the first quarter of 2013 (restated operating profit of EUR 1.1 million, 1–12 2012 including non-recurring items of approximately MEUR 4, weakening the Wireless Business Segmentīs operating result). Operating profit from Continuing Operations, without these non-recurring costs was EUR 9.0 million (restated operating profit of EUR 5.1 million, in 2012).

Cash flow from operating activities was EUR 34.7 million (EUR 6.8 million, in 2012). Net cash flow was EUR 28.7 million including non-recurring net cash flow of about EUR 28 million resulting from the sale of the Test Tools product business (EUR 5.1 million, in 2012). Net gearing was -46.1% (6.1%, in 2012). EBITDA from Continuing Operations was MEUR 17.2 (MEUR 8.1, in 2012).

EBīs equity ratio at the end of the period was 65.1% (54.5% on December 31, 2012). The increase in equity ratio is mainly due to the sale of the Test Tools product business. The transaction resulted in a net profit of about EUR 24 million. Cash and other liquid assets at the end of the reporting period were EUR 43.0 million (EUR 14.3 million on December 31, 2012). The increase in cash reserves is mainly due to the sale of the Test Tools product business. EB has from Nordea Bank plc a committed credit facility agreement and a revolving credit facility agreement of altogether EUR 20 million, valid until June 30, 2014. EUR 0.0 million of these facilities was used at the end of the reporting period.

The total R&D investments for Continuing Operations during January-December 2013 were EUR 18.5 million (restated EUR 22.0 million, 1–12 2012), equaling 9.3% of the net sales (restated 12.6%, in 2012). The share of R&D investments in the Automotive Business Segment was EUR 14.3 million (restated EUR 17.9 million, in 2012) and in the Wireless Business Segment in Continuing Operations EUR 4.2 million (EUR 4.1 million, Continuing Operations, in 2012).

EUR 0.0 million of R&D investments of the reporting period were capitalized (EUR 2.9 million, in 2012). The amount of capitalized R&D investments at the end of December 2013 was EUR 12.0 million (EUR 13.5 million, December 31, 2012). A significant part of these capitalizations is related to customer agreements of the Automotive Business Segment, where future license fees, based on the actual car delivery volumes, are expected to accumulate in the coming years. Depreciations of R&D investments were EUR 1.6 million during the reporting period (EUR 0.9 million, in 2012).

The total cost effect on EBīs income statement in 2013 caused by research and development investments, their capitalizations and depreciations, was EUR 20.1 million (EUR 19.9 million, in 2012).

Consolidated Statement of Comprehensive Income (MEUR)

            2013             2012
CONTINUING OPERATIONS 1000 EUR 1000 EUR
    restated
NET SALES 199 281 173 865
     
Other operating income 3 538 2 430
Change in work in progress and finished goods -27 -186
Work performed by the undertaking for its own purpose and capitalized 12 518
Raw materials -12 425 -7 269
Personnel expenses -113 162 -101 077
Depreciation -9 040 -7 052
Other operating expenses -60 035 -60 161
     
OPERATING PROFIT 8 143 1 068
     
Financial income and expenses -920 -478
     
PROFIT BEFORE TAX 7 222 590
     
Income tax  -570 491
     
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS 6 652 1 081
     
Profit for the year from Discontinuing Operations 24 294 1 185
     
PROFIT FOR THE YEAR 30 946 2 267
     
Other comprehensive income:    
Items that will not be reclassified to statement of income    
  Re-measurement gains (losses) on defined benefit plans 0 -815
Items that may be reclassified subsequently to the statement of income    
  Exchange differences on translating foreign operations -36 189
     
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 30 910 1 641
     
Profit for the year attributable to    
  Equity holders of the parent 30 946 2 267
  Non-controlling interests 0 0
Total 30 946 2 267
     
Total comprehensive income for the period attributable to    
  Equity holders of the parent 30 910 1 641
  Non-controlling interests 0 0
Total 30 910 1 641
     
Earnings per share for profit attributable to the shareholders of the parent company:    
     
Earnings per share from Continuing Operations, EUR    
  Basic earnings per share 0,051 0,008
  Diluted earnings per share 0,051 0,008
Earnings per share from Discontinuing Operations, EUR    
  Basic earnings per share 0,188 0,009
  Diluted earnings per share 0,187 0,009
Earnings per share from Continuing and Discontinuing Operations, EUR    
  Basic earnings per share 0,239 0,018
  Diluted earnings per share 0,238 0,017
     
Average number of shares, 1000 pcs 129528 129413
Average number of shares, diluted, 1000 pcs 130092 130238